|Last Quarterly Update:||7/25/2016|
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Companies in this industry operate spas and wellness centers. Major US companies include destination spa chains Canyon Ranch and Golden Door, massage clinic franchise Massage Envy, day spa franchise Woodhouse Spas, and Steiner Leisure, which operates spas on cruise ships and at resorts and hotels. Major companies based outside the US include Absolute Spa (Canada), Gokurakuyu (Japan), and Grupa Uzdrowisk (Poland).
Worldwide, the industry includes about 105,000 spas that generate about $94 billion in annual revenue, according to SRI International. Europe accounts for more than 30% of worldwide revenue, followed by the Asia/Pacific region and North America, each of which generates about 20% of global sales.
The spa services industry in the US includes about 21,000 facilities with combined annual revenue of about $16 billion, according to the International SPA Association.
Demand for spa services is driven by personal income and demographic trends. The profitability of individual companies depends on efficient resource use and effective marketing. Spa visits and revenue per visit are key industry metrics. Larger companies have some economies of scale in marketing and purchasing. Small companies compete by offering unique services, catering to a local market, and delivering a superior customer experience. The US fitness and recreational sports centers industry, which includes spa services, is fragmented: the top 50 companies account for about one-third of sales.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major providers of spa services are day spas (about 80% ...
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